How to Block and Unblock E-Way Bill?

You need an e-way bill when you transport goods worth more than ₹50000 from one place to another. However, you need to be a registered GST taxpayer to generate an e-way bill. There are certain cases when GST officials block or unblock e-way bills as and when required. In this article, you will learn what is the process of e-way bill blocking, the reason and impact along with how you can unblock it if you find yourself in such a situation.

A common question that arises is how blocking of E-Way Bill is done? The answer is, a taxpayer cannot block an e-way bill. GST authorities are only capable of blocking your e-way bill generation facility. An E-Way Bill will be blocked if you have not filed your GSTR-3B for the last 2 or more preceding tax period.

If your e-way bill is blocked, you can find it challenging to raise new bills for the movement of their goods in the future. Hence, they will have to unblock their e-way bill in this regard.

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Under Rule 138E of the CGST Rules:

• If a taxpayer fails to file GSTR-3B (monthly return) or CMP-08 (for composition scheme taxpayers) for two or more consecutive tax periods, their GSTIN’s e-way bill facility gets blocked.
• This block is applied automatically by the GST portal and synced with the e-way bill system.
• The purpose is to curb non-filing, tax evasion, and tax revenue leakage.

Note: Blocking is only applicable to the new e-way bill generation under the specified GSTIN. E-way bills already generated remain valid until their expiry.

• The blocking of e-way bill generation applies not only to regular GSTR-3B filers but also to composition taxpayers who fail to submit CMP-08 for two consecutive quarters.
• The restriction affects only the creation of new e-way bills; those already generated and active are not impacted.
• Currently, the block is primarily enforced on supplier GSTINs. Transporters and recipients are generally unaffected unless specifically mentioned.
• If non-compliance continues after a temporary unblock approved by an officer, your GSTIN may be blocked again.
• The best way to avoid disruptions is to consistently file returns on time.

For unblocking e-way bills, you can perform any of the three following methods:

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1. Filing GSTR-3B

If you fall behind on your GST payments, you can unblock your GSTIN by submitting GSTR-3B for the period defaulted. After completing this process, you can generate an e-way bill the next day. You need to follow the steps given below in order to accomplish it:

Step 1: Open the E-Way Bill portal and click on “Search” option. From the drop-down, select “Update Block Status”.

Step 2: Enter your GSTIN and feed in your CAPTCHA code. Click on “Go”.

Step 3: Choose "Update Unblock Status from GST Common Portal" to view the status of the recent filing.

If you are still unable to unblock your GSTIN, you can contact the GST Help Desk to rectify this issue.

2. By a Jurisdictional Officer

You can give a manual representation to the Jurisdictional Officer in case you face any technical error or are in an emergency case. The officer then authenticates and accepts your request to unblock the GSTIN online.

3. Through Online Application in EWB-05

You can also apply for EWB-05 online to unblock your e-way bill. For unblocking, you need to follow the below steps to get away with your e-way bill blocking:

Step 1: Log in to the GST portal by providing your login credentials.

Step 2: On the dashboard, click “Services” and then “User Services”.

Step 3: Next, click on “My Applications”.

Step 4: From the dropdown menu select “Application Type” and choose “Application for unblocking e-way bill”.

Step 5: Click on "New Application" and choose "Expected date for submission of returns of the default periods".

Step 6: Select “Reason of Unblocking by Taxpayer” from the dropdown options.

Step 7: Upload your documents by clicking on "Choose File".

Step 8: Select the verification checkbox at the bottom of the page and the name of the person who signed this application to proceed.

Step 9: You also need to enter the name of the place from where you are filing this application. After filling in the details, click on “Proceed”.

Step 10: A pop-up message will appear. Click “Proceed” again to submit this application.

Step 11: Choose “Submit with EVC” or “Submit with DSC” whichever is applicable from the “Submit Application” menu.

• If you prefer submitting with EVC, you need to enter the OTP sent to the authorised signatory's registered mobile number and email address. Once you enter the OTP, click on “Validate OTP”.
• Alternatively, if you prefer submitting an application with DSC, click on the “Proceed” button and select your certificate. After that, click on the “Sign” button.

Upon completing the above procedure, the system will send a confirmation email and SMS to your registered email ID and mobile number, verifying the successful submission of your application form. You can download the acknowledgement application form.

The blocking or unblocking of an e-way bill will not affect transporters as they are only registered on the e-way bill portal. However, you cannot use your blocked GSTIN as a consignee, consignor, or transporter to generate an e-way bill. Therefore, unblocking an e-way bill will help the transporter to resume the transportation of goods.

To summarise, an e-way bill blocking impacts your business operation significantly as the goods cannot be delivered or received without it. Therefore, complying with GST provisions and filing returns on time is important to ensure smooth business transactions.